Russian independent oil and gas producer Novatek expects to boost its gas production by 10% and its liquid hydrocarbons production by 2% in 2019.
In 2018, the company produced 548 mboe of hydrocarbons, including nearly 69 bcm of natural gas (+8.5%) and 11.8 Mt of liquids (including both crude oil and condensate, +0.2%). This represents an increase of 35 mboe (+6.9%) compared with the previous year. The company's preliminary gas sales volumes (including LNG) estimates stood at 72 bcm (+11%) in 2018, of which 66 bcm were sold in Russia.
In addition, Novatek reports having signed contracts for about a quarter of the investment required for its 19.8 Mt/year Arctic LNG-2 project on the Gydan Peninsula (Russia). In December 2018, the firm awarded an €2.2bn (US$2.5bn) onshore engineering and construction (E&C) contract to a consortium including the Italian oil and gas industry contractor Saipem and its Turkish partner Renaissance for the construction of Arctic LNG-2, which will include three liquefaction trains of 6.6 Mt/year capacity each. The first train expected to start up by the end of 2023. Arctic LNG-2 will unlock more than 7 Gboe of hydrocarbon resources in the onshore Utrenneye gas and condensate field.
Novatek also indicated that Total might participate in an LNG terminal project in Murmansk, which would reload LNG from ice-class carriers to conventional carriers.
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